Archives for 2021

Bankruptcy Court Issues Decision about Restrictions on Bankruptcy Blocking 

Admin on December 23, 2021 Posted in Blog

Courts can not come to a consensus about whether statements found in a borrower’s documents established to prohibit the borrower from filing for bankruptcy are enforceable as the result of either federal public policy or state law.  Various court rulings have tackled this issue over the last few years. A New Jersey District Bankruptcy court […]

Federal Circuit Court Rules Some Student Loans Can be Discharged in Bankruptcy

Admin on December 9, 2021 Posted in Bankruptcy Law, Blog, Chapter 7 Bankruptcy

In the recent circuit court case of Homaidan v. Sallie Mae, Inc., a federal circuit court held that a ruling by a New York bankruptcy court that private loans to pay for college education are not exempt from being discharged under the Bankruptcy Code’s Section 523. This section of the Bankruptcy Code excludes from discharge […]

Delaware Court Considers Rejection of Executory Contracts by Debtors During Bankruptcy

Admin on November 23, 2021 Posted in Bankruptcy Law, Blog

If a debtor declines a contract in a bankruptcy case, the non debtor can be impacted in several ways. In 2019, the Supreme Court heard the Mission Products case, which attempted to settle a split among circuit courts regarding the impact of rejecting a contract under the Bankruptcy Code’s Section 365.  This case required the […]

Maryland Court Questions When Debts are Incurred 

Admin on November 9, 2021 Posted in Bankruptcy Law, Blog

Pursuing Chapter 11 bankruptcy can prove to be an advantageous and appealing option for individuals as well as companies faced with a large amount of financial liabilities. Filing for Chapter 11 bankruptcy both results in the placement of a bar on any pending legal action against a company and provides businesses with the chance to […]

Eighth Circuit Addresses Interlocutory Order Appeals to Preserve Appellate Review Right

Admin on October 30, 2021 Posted in Bankruptcy Law, Blog

A federal district court recently issued an important and likely to be an influential decision that addressed equitable mootness during the appeal of bankruptcy cases. In the FishDish case, the Eight Circuit held that even though the issue of equitable mootness existed, the court additionally found that the question of if an order is interlocutory […]

Third Circuit Holds Pre-Effective and Post-Confirmation Date “Claims” Can be Discharged in Bankruptcy

Admin on October 15, 2021 Posted in Bankruptcy Law, Bankruptcy News, Blog

Toward the end of 2021, a federal circuit court found for the first time that claims that became connected to a debtor’s case after a Chapter 11 plan was confirmed but before the plan’s effective date was subject to discharge. This holding urges extra caution from all creditors and counterparties of a Chapter 11 case […]

Second Circuit Finds Certain Student Loans Can be Discharged

Admin on September 30, 2021 Posted in Bankruptcy Law, Blog, Recent Court Decisions, Student Loans

The Second Circuit in the recent case of In Homaidan v. Sallie Mae recently held that some kinds of private student loans do not require the repayment of debts that can be categorized as an educational benefit. This decision resulted in the Second Circuit joining the Fifth Circuit and Tenth Circuit on the matter. Neither […]

Bankruptcy Court Finds “Critical Vendor” Label Provides No Insulation from Preference Claims

Admin on September 15, 2021 Posted in Bankruptcy News, Blog, Chapter 13 Bankruptcy, Chapter 7 Bankruptcy

In what could likely end up an influential ruling, a Delaware court recently held that securing a “critical vendor” status in Chapter 11 commercial bankruptcy case ultimately offers no defense in situations where the vendor later faces legal action for the recovery of preferential payments that the debtor recoups shortly before bankruptcy. The Role of […]

The Issuers of Stock Held Liable for Double-Pledge

Admin on August 30, 2021 Posted in Bankruptcy News, Blog

A Louisiana bankruptcy court, in the Karcredit LLC case, recently considered a case involving two lenders and one stock certificate. At the heart of the Karcredit case was a party who relied on a stock certificate to satisfy loan duties owed to another party. After a replacement certificate was reissued, one party relied on this […]

Avoidance Powers After the U.S. Glove Case Ruling Examines Whether Benefit Required for Avoidance Power

Admin on August 15, 2021 Posted in Bankruptcy Law, Blog

Under the US Bankruptcy Code, various powers are granted to debtors, creditors, and other parties involved with the bankruptcy process. One such power is found in section 544, which grants individuals the ability to avoid some interactions with bankruptcy trustees or debtors-in-possession. Questions, however, have lingered about whether  avoidance powers can only be exercised when […]